Joint Venture with Hillwood West to Build Seven Condominium Communities with 600+ Units for a Total Investment of $400 Million
SAN FRANCISCO – June 28, 2013 – Trumark Urban announced today the closing of two prominent development sites and a joint venture with Hillwood West, a division of Hillwood Investments, a Dallas-based development company. Hillwood West is committing to a substantial amount of equity necessary to build seven condominium projects with more than 600 units in desirable San Francisco neighborhoods with a total investment cost exceeding $400 million.
The first project proposes a redevelopment of the existing Dugoni School of Dentistry at 2155 Webster Street in Pacific Heights into 77 condominiums at a total cost of $155 million.
“We are proud to begin the redevelopment of this attractive property and tremendously improve the traffic in the area,” said Arden Hearing, managing director of Trumark Urban. “Our new residential plan works within the current building envelope and will reduce parking and traffic demands by more than 50 percent.”
Trumark will spend the rest of this year on design and entitlements and plans to break ground in 2014.
Trumark Urban also closed on property in the Cow Hollow neighborhood that is approved for 27 condominiums at a total development cost of $37.8 million. The project at 1501 Filbert, yet to be named, will feature homes ranging in size from 1,000 square-foot flats to 2,500 square-foot townhomes. $12 equity
“We are excited to offer this project, in such a special location to a market that is really under-served in terms of new condo inventory,” said Mark Higgins, senior vice president of sales and marketing for Trumark Urban.
Some offerings will be rare larger floor plans with outdoor patios or rooftop decks. Several higher-level homes will command spanning views of the San Francisco Bay and Golden Gate Bridge. Trumark Urban plans to break ground on the Filbert community by July of this year.
“We have an immense amount of respect for the planning efforts that San Francisco so thoughtfully engineered over the past decade. Now, the onus is on the development community to achieve that vision,” said Arden Hearing, managing director of Trumark Urban.
The developments on Filbert and Webster are the first projects that Trumark Urban has invested in with Hillwood West, which is looking to expand its existing portfolio in San Francisco.
“Trumark has assembled an unparalleled portfolio in one of the finest cities in the world,” said L.M. Cummings, president of Hillwood West. “We have a high level of respect for Trumark’s ability to execute development projects over its 25-year history. When we toured these sites and saw the vision, and then considered the stage of the economic recovery that we appear to be in, we were excited to team up with Trumark in pursuit of these opportunities.”
The companies targeted areas of San Francisco where city planners envision infill housing on repurposed lots in existing neighborhoods. All sites are zoned for residential use, comply with zoning codes and try to integrate with the fabric of changing communities.
“We are fortunate to work with a partner who is not only an investor but also a seasoned developer; one of the largest in the country,” said Gregg Nelson, principal and co-founder of Trumark. “Our organizations are very much aligned with respect to real estate development and our perspective on market dynamics.”
Trumark Urban continues to buy additional property in San Francisco and is exploring new acquisitions in markets beyond San Francisco, including in Los Angeles and New York.
About The Trumark Group of Companies
The Trumark Group of Companies is a diversified real estate developer and builder with expertise in land acquisition, homebuilding, community design, entitlements and office, R&D and retail development.
Trumark Companies is the residential development arm of the organization and has completed over $700 million in transactions since 2000, representing approximately 3,800 lots in Northern and Southern California. www.trumark-co.com/companies
Trumark Commercial, which builds, leases and sells commercial buildings, has entitled or developed approximately two million square feet of office, R&D, retail and hotel properties in the northern portion of the Golden State. www.trumarkco.com/commercial
Trumark Homes is a new generation homebuilder that is nimble, focused and unburdened by broken projects of the past. Since May of 2009, Trumark has raised more than $140 million of equity and funded 16 deals. Its pipeline exceeds 2,000 lots in core urban areas of California, representing more than $1 billion in future revenue.www.trumarkhomes.com
Trumark Urban develops condos in core urban neighborhoods close to jobs, transit and local businesses. Since making the strategic decision to focus on San Francisco in 2011, the new division has acquired seven sites in San Francisco for high-density condominium communities with plans in the works for more than 600 units.www.trumarkurban.com
About Hillwood West
Hillwood West, a division of Hillwood Investments that covers the western region of the United States, is a Perot company ranked as one of the top commercial real estate investors and developers in the country and the top residential developer in Dallas-Fort Worth. The company’s developments currently house facilities for more than 100 companies listed on the Fortune 500, Global 500 or Forbes List of Top Private firms. Hillwood, the parent company of the Hillwood brand, is best known for its Alliance brand of developments that includes the 17,000-acre AllianceTexas, 4,474-acre AllianceFlorida at Cecil Commerce Center, and 2,000-acre AllianceCalifornia. For additional information about the company, please visit www.hillwood.com.